Panay News

Understand­ing JVA

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THERE’S bewilderme­nt among Central Ne gr os Electric Cooperativ­e (Ceneco) workers. Too, there’s hesitation from some of the directors and other top officials of the coop.

Likewise, mis interpreta­tion starts to cloud the minds of some welltutore­d individual­s and politicos in Bacolod City.

All these are about the muchtalked amalgamati­on of Ceneco and MORE Electric and Power Corporatio­n via a joint venture agreement ( JVA). Questions:

* What’s JVA?

* How it’ll be understood by the common tao?

* Will it bring goodness to Ceneco, its workers and power consumers?

Well, these three major questions impelled me to become a voracious reader, specially, re: JVA.

So, first thing first, what are the “key takeaways” when we discuss JVA?

* In JVA, two or more businesses decide to combine their resources to fulfill the enumerated goal(s).

* JVA is a common method of combining the business prowess, industry expertise and personnel of two or more otherwise unrelated companies.

Both takeaways are the very reasons why Ceneco and MORE Power are bent to fuse. They want to level-up the delivery of electricit­y ( attuned in time) to more than 200,000 consumers within Ceneco’s distributi­on turf. A noblest intention, indeed!

The term l evel- up will be highlighte­d by the following factors:

* Cheaper electricit­y rate(s)

* Efficient 24/7 power distributi­on services

* Employment of the state-of-theart equipment and facilities

* No more brownouts

LIKE PUBLICPRIV­ATE PARTNERSHI­P

But the “64-dollar” question is: With the proposed JVA, is Ceneco really up for sale?

Nope!

A JVA is just a mere agreement hatched on a “temporary basis”. Meaning, the contract between two or more parties must (always) have a term limit.

JVA is somehow similar to PPP ( Public- Private Partnershi­p) deal nowadays.

So, Sir Frank Carbon of the Metro Bacolod Chamber of Commerce and Industry (MBCCI) was right in casting his valuable insights.

Selling or disposing electric coop is not part of NEA’s (National Electrific­ation Administra­tion) mandate. Neither by the DOE ( Department of Energy) nor ERC (Energy Regulatory Commission). More so by the elected directors. Rather, only the member-consumers have the right to say so.

No ( more) debate on these acumens. JVA ain’t synonymous to “for sale”.

MAINTAIN IDENTITY

With JVA, Ceneco and MORE Power will be able to maintain their respective identity still.

They, too, can easily return to their normal business operations once the JVA is complete or over.

Yes, risks are inevitable in any business venture. But the beauty in JVA is it provides the benefit of “shared risks”. It also contains a socalled “exit strategy”. Such sets the direction how to dissolve a JVA if it’s necessary.

Above all, in JVA, both contractin­g companies are jointly held responsibl­e for the profits, risks, losses and governance within the duration of the contract. That’s why it is very, very important to draft a JVA with an utmost care. Experts choruse: To avoid litigation risk(s) down the road.

A BLESSING

Is JVA a blessing? Yes! Because even highly

distinguis­hed fast food chains – Jollibee and Mc Donald’s – are now into JVAs with their trusted biz partners.

Jollibee Foods Corporatio­n ( JFC), one of the largest Asian food services companies, has an existing JVA with Yoshinoya Internatio­nal Phils. Inc. (YIPI).

McDonald’s, too, is legally tied with three partners – CITIC Limited, CITIC Capital and Carlyle Capital.

Jollibee’s and Mc Donald’s very intent: Enhance, expan d and make their businesses more profitable.

So, why not give Ceneco a chance to shine? With MORE Power, it can!

Silay City’s Mayor Joedith Gallego said: Why not give a try?

“Kon maka- solve man lang sa power problem or brownout kag maka-panubo sang presyo sang kuryente kada- kilowatt hour, I am okay,” he said.

For his part, Mayor MacMac de la Cruz of Don Salvador Benedicto (DSB) town said, “Kabay tani maga-saka gilayon ang kalidad sang serbisyo kag maga-nubo ang presyo sang kuryente.”

Then, his fervent wish: “Kabay nga malab-ot na sang serbisyo ang mga malayo nga komunidad nga tubtub subong wala pa malab- utan sang kuryente.”

Earlier, Bacolod City’s Mayor Albee Benitez cast no objection with this newest developmen­t. Provided, however, such would mean cheaper electricit­y, no more brownouts, and will tap renewable energy sources.

Bacolod, Silay and DSB alongside Talisay and Bago are the franchise areas of Ceneco.

DIVERGENT THINKING

Really, it’s time now for Ceneco execs and workers to subscribe to divergent thinking. If they“love” Ceneco, they have to embrace change… other possibilit­ies beneficial for the coop and the consumers in general.

Yeah, Ceneco Board President Jojit Yap’s right. Power consumers and other Ceneco stakeholde­rs must be consulted first.“And let this proposed JVA be subjected to an in- depth discussion,” she said.

Each of the contractin­g party will be given an opportunit­y to stress its entitlemen­ts, including retention of workers prior to the inking.

Exact purpose: To ensure that none will be put in a loselose situation.

That’s the essence of JVA./

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